Dec 29 2025
Artificial Intelligence

AI Tool Evaluation Tips for SMBs

Many small business owners find the upfront investment required for artificial intelligence daunting, but being thoughtful about implementation and failing fast can help ensure success.

Artificial intelligence can be a helpful tool for small to medium-sized businesses looking to find efficiency gains with fewer resources. With generative AI and built-in AI features becoming the norm, it’s easier than ever for SMBs to access and use AI to improve productivity. Putting the right tools in place the first time around is the goal of many SMBs considering AI adoption, but that can be difficult to achieve. And many SMB owners expect AI to be too complex due to uncertainties around AI’s capabilities or a general lack of understanding that makes it seem out of reach.

“There is also a cost factor: Even though AI can drive efficiency, the upfront investment can be daunting, and more than half of small business owners cite cost as a barrier to adoption,” says a spokesperson for the U.S. Small Business Administration. “On top of that, many entrepreneurs worry whether they have the right data or tech infrastructure to make an AI tool work properly.”

When it comes to new, AI-driven platforms and solutions, SMBs can’t afford to conduct a lengthy trial and error process to find the right tools. Here’s what small business owners need to know about evaluating AI tools to ensure they get a strong ROI.

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How Should SMBs Evaluate AI Tools?

Rather than starting with the technology itself, small business owners first identify a business problem, according to the SBA spokesperson. They advise that SMB owners be crystal clear about what they need an AI tool to do for their business.

“Once you know that, you can evaluate potential tools by how well they align with those needs,” says the spokesperson. “Instead of getting distracted with fancy tools your business will never use, figure out which AI tools integrate with your current systems, if it’s scalable as you grow and if it fits your budget while delivering a solid return on investment.”

When evaluating AI tools, it’s important for SMB owners to keep in mind that the best AI tool is one that fits naturally into a small business’s operations, is safe and reliable, and clearly adds value to the businesses bottom-line, says the SBA spokesperson.

“One big consideration is compatibility. Will it integrate smoothly with your existing software and workflows or create more headaches? Small businesses also want a solution that will grow with their company, so they should check that it’s flexible enough to handle their business as it expands,” the spokesperson adds. “Another factor is user-friendliness — making sure the tool saves the company and helps their team with their work.”

READ MORE: Build artificial intelligence confidence with the right toolsets.

The SBA suggests that one thing a small business can start with is a simple function: automated customer service, including thoughtful email responses with follow-ups for better customer engagement, which also helps with product ideas and marketing.

“A small business should also look at data security and privacy, ensuring the vendor has strong safeguards in place to protect a small business’s information. And finally, consider the cost versus the return: A small business should be confident that any efficiency gains will outweigh the price tag in the long run,” the spokesperson explains.

“Failing fast” is a phrase people use across industries when discussing the piloting of innovative technologies. As the SBA spokesperson puts it, “‘failing fast’ is about running a low-risk pilot, getting feedback quickly, and then iterating.” But is it a smart strategy for SMBs?

“For a small company, this approach beats pouring a ton of resources into a project only to discover issues much later. The key is to keep those initial experiments manageable — fail fast, fail small, learn from it, then scale up what works,” says the SBA spokesperson. “I do believe that it can be a smart strategy for small businesses experimenting with AI and can help them find what truly delivers value to their company without breaking the bank.”

58%

The percentage of small business owners who don't plan to use AI for business

Source: nextinsurance.com, "Small business AI adoption declines to just 28%," May 28, 2025

The Value of Partnership for SMBs Considering AI Adoption

Small businesses may not have in-depth AI expertise, but their technology partners likely do. According to the SBA spokesperson, partnering with an SMB’s AI vendor can make a huge difference in how smoothly and effectively the business implements a new tool.

“A strong vendor relationship means you’re not doing it alone; the vendor’s experts should be there to help tailor the technology to your needs and answer questions as they come up,” the spokesperson adds. “Many vendors will guide you through best practices, help with training your team and even support a pilot phase to ensure the tool is working for you before you fully roll it out.”

In addition to tapping into the expertise of their AI vendor partnerships, SMBs can also access resources through organizations such as the Small Business Administration and other local business networks to help inform decision-making around AI.

Embracing new technology like AI can feel challenging, but America’s entrepreneurs have always risen to the occasion,” says the SBA spokesperson. “With a responsible approach, I believe AI can help open incredible opportunities for growth and competitiveness in any small business.”

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